The liquid federation for which anyone can run a node to verify the network, & privately peg in their own bitcoin, & also move in & out of via Lightning transactions, is a perfectly reasonable approach to adding some scale to bitcoin. But I think new developments suggest there will be even better options in the not too distant future.
Discussion
If you think Ethereum is decentralized(or acceptable/reasonable), I can understand you saying this. But I don't think Ethereum is decentralized(or acceptable/reasonable), and neither is Liquid.
The Liquid supply is provably linked to the proof of work chain, and Liquid privacy makes it basically impossible for them to target or censor any individual. The federation could collude & freeze everything (at the expense of their entire business model), but they can't censor or arbitrarily inflate. It's really nothing like Eth. There are always tradeoffs, Liquid is by no means perfect & no one is saying you have to use it, but I think blockstream is an extremely valuable bitcoin benefactor & will continue to be.